House Committee Substitute

HCS/SCS/SB 726 - This act makes modifies provisions relating to financial transactions.


This act modifies numerous provisions of law that specify the application of a particular interest rate. The act requires that the interest rate used by these statutes be either the adjusted prime rate charged by banks as determined by the Department of Revenue, or in some situations this adjusted prime rate plus one percent.

The provisions where interest rates are modified include: interest rates used by the Director of Revenue for refunds or overpayments, late payments by the state for supplies and services, late payments by public entities to contractors, repayment of teaching degree scholarships, worker's compensation benefit payments, delinquent worker's compensation taxes, nursing student loans, creditors claims on written contracts that did not specify the rate of interest, judgments in tort cases, securities litigation, loans to political subdivisions for alternative fuel vehicles, failure to pay the odorized propane assessment, certain payments by and to the Land Reclamation Commission, unclaimed property that the holder fails to pay the state treasurer, overpayments by the Department of Mental Health to vendors, and judgments against air contaminant sources that have not paid fees.

This act is similar to HB 1935 (2012) and SB 848 (20120).


(Section 67.085)

Under current law, political subdivisions and other public entities may invest certain funds in certificates of deposits. This act provides that the funds may be deposited in any deposit account.

Current law also provides that the financial institution receive the same amount of deposits from customers of other financial institutions at the same time the public funds are deposited and the certificates of deposit are issued. This act requires the financial institution to receive the same amount of deposits on the same date the public funds are deposited.

This act is similar to HB 1400 (2012) & SB 813 (2012).


Currently, security interests in property subject to certain federal or state filing requirements can only be perfected by following such requirements. There is an exception for property held as inventory by a person in the business of selling or leasing goods of that kind. This act removes persons in the business of leasing goods of that kind from the exception.

This act is similar to HB 1153 (2012), HCS/HB 1400 (2012) & HCS/HB 1256 (2012).


(Section 407.1400)

This act requires entities or persons providing credit card processing services to disclose certain information on any contract for their services. Such persons or entities cannot charge more than $50 for terminating the contract or more than one month's worth of the minimum fee after terminating the contract. A violation of the provisions of this act will constitute an unfair and deceptive act or practice under Chapter 407. The provisions of this act will not apply to banks, savings associations, trade associations, cooperatives, wholesalers, credit unions, or the parent, affiliate or subsidiary of a bank or credit union. These credit card processing provisions will only apply to contracts entered into after August 28, 2012.

This act is similar to HB 1844 (2012).


Currently, silver coins of the United Stats are considered legal tender. This act makes gold coins of the United States also legal tender. The exchange of gold and silver coins for another form of legal tender will be exempt from taxes and capital gains imposed by the state. The Committee on Ways and Means must study the possibility of establishing an alternative form of legal tender by January 1, 2013 and draft any legislation recommended by the Committee relating to the study.

This act is similar to HB 1376 (2012) & HB 1637 (2012).


This act modifies provisions relating to mortgage loan brokers making loans on manufactured or modular homes. The restriction against charging points or fees on residential real estate loans shall no longer apply to these individuals. Mortgage loan brokers licensed in Missouri will not be required to maintain an office in the state. They still must obtain a certificate of authority from the Secretary of State and file an irrevocable consent to Missouri venue for actions brought against them. The Division of Finance may assess reasonable costs for certain investigations against mortgage loan brokers conducting business but not having an office in the state.

This act is similar to HB 1309 (2012), HCS/HB 1400.


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